The German company Fintech N26 announced the launch of a beta version of a mobile banking application in the UK. The project is being implemented jointly with the Chinese technology giant Tencent. In addition, German insurer Allianz and PayPal co-founder Peter Thiel take part. In 2019, the companies plan to extend the service to the United States.
Initially, 50 thousand people, pre-subscribed to the project, will receive access to the new application in the UK. In a month, a wide launch of a mobile bank will take place.
N26 offers a mobile banking application and a MasterCard debit card. The project works without a single physical department and does not charge a transaction fee. The only additional expense item will appear for UK users with a standard account when going abroad. For cash withdrawals from N26 cards will be charged 1.7% commission.
Several products are offered on one platform at once: a main current account, a premium account called N26 Black, an overdraft, savings and loans. However, features that go beyond the basic account will not be offered to users in the UK until a general launch.
The company has existed since 2013, which makes it one of the oldest so-called digital bidder banks trying to compete with larger lenders.
The company plans to start work in the USA in the first quarter of 2019. Although N26 has a banking license recognized in Europe, the organization is not authorized by the regulatory authorities in the United States. So the project will be implemented in cooperation with the American credit organization, which has not yet been voiced.
The expansion in the United States was originally planned to be held before the end of this year, but the Executive Director of N26, Valentin Stallf, said that the deadline was postponed to the beginning of 2019. He noted that when launching new projects, it is not always possible to correctly predict dates, but added that the new time frame is satisfactory.
The initiators of the project believe that already in the second quarter of 2019 their business in the United States will be breakeven.